Federal Law: Rule 22121–22274 [04–9016] Enacted 1938, updated August 2004 and governs:
- Minimum Wage
- Record Keeping
- Child Labor Standards
Exemption Status is based on job status, job responsibilities, and salary (not based on job titles). It is important to determine FLSA status for position during job evaluation process. In addition to job description, supervisor/department might be required to complete a FLSA questionnaire.
Employees are classified as exempt are exempt from the law.
- Employees are compensated with a set salary rather than hourly
- No requirement to pay overtime premiums
- Classified as executive, administrative, professional, outside sales, or computer professionals
Examples of exempt duties and responsibilities:
- Hiring, firing, disciplining and evaluating employees
- Planning work
- Determining policies and procedures
- Authority to negotiate and sign contracts
Employees classified as nonexempt are governed by the law.
- Employees are compensated on an hourly basis
- Must be paid time and a half (1.5) for hours in excess of 40 hours worked in a standard work week
Examples of nonexempt duties and responsibilities:
- Animal care
- Typing or word processing
- Preparing payroll
- Book keeping
- Answering phones